In December 2016 the Independent Regulatory Board of Auditors (IRBA) withdrew its accreditation of Broad-Based Black Economic Empowerment (B-BBEE) Registered Auditors (BARs), which resulted in the South African National Accreditation System (SANAS) becoming the sole accreditation body for B-BBEE verification agencies.
In the Western Cape alone, Mazars is one of only ten B-BBEE agencies to receive a SANAS accreditation, of which only three are affiliated to international accounting firms.
Previously the IRBA had accredited in excess of 300 BARs firms in South Africa, but following their withdrawal, less than 60 SANAS accredited B-BBEE agencies remain to verify B-BBEE scorecards. This has resulted in a dramatic shift for the portion of the market that was being serviced by IRBA accredited BARs, which now have to choose from less than 60 SANAS accredited agencies in South Africa, half of which are situated in Gauteng.
Using a SANAS accredited agency makes sense if you want peace of mind that you are complying with the B-BBEE Codes of Good Practice. Even Exempt Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs) that only require a B-BBEE affidavit instead of a B-BBEE scorecard under the amended B-BBEE codes, would be well served to obtain guidance from a SANAS accredited B-BBEE verification agency due to the risk of completing the affidavit incorrectly, which could result in dire consequences if found guilty of “fronting”.
Mazars is a diversified professional services firm with a focus on audit, tax and advisory services staffed by qualified professionals with a sound understanding of businesses across various sectors. Mazars is able to fully understand complex ownership transactions, which places them in a strong position to interpret the effect of these on the BEE scorecard and interpretation of the B-BBEE codes of good practice.
Mansoor Salee, Partner and Manager of Mazars B-BBEE is available to speak about the following topics:
- The importance for SMMEs to use a SANAS accredited agency for their B-BBEE Verification and certification;
- The benefits of an SMMEs verification agency being SANAS accredited;
- The risks EME’s and QSE’s face when completing a B-BBEE affidavit incorrectly;
- The impact on SMMEs regarding the amended B-BBEE codes.